Customs further simplifies the procedure for fixation of brand rates

The Dollar Business Bureau

The CBEC has issued a notification No.54/2016-Customs November 22, 2016, further revising the already simplified procedure for fixation of brand rates.

As per the new notification, the CBEC clarifies that the requirement of original duty paying documents furnished by the exporter to claim drawback duties with the extent of utilization for the brand rate application, have been further simplified.

In other words, the applicant need not submit a bulk of documents and instead file only the following ones:

a. The working sheet (submitted by applicant with brand rate fixation claim) showing the drawback amount, each document wise, in support of claim, signed by applicant

b. a certificate from an independent Cost Accountant/Chartered Accountant verifying the details submitted by the applicant

c. Self attested copies of the duty paid documents (like bills of entry, invoice etc.) carrying their self-endorsement/defacement to the extent of utilization under the brand rate fixation claim.

Once the above documents are filed and accepted by the CBEC, the applicant need not submit original duty paying documents for endorsing/defacement by verifying officer during postfacto checking stage.

It is left to the discretion of the verifying officer who may choose to randomly cross verify not more than 5% originals of the self-attested copies of the total duty paid documents.

The random selection is based on the dynamic and risk parameters as indicated by the Commissioner of Excise and Customs Duty.

Cases where existing applications under the revised simplified brand rate scheme where brand rate letter has not been issued or where it has been issued but post-facto verification is pending, the applicant may choose either to:

(a) continue with the existing procedures; or

(b) have the requirement of submitting original duty paying documents dispensed (subject to random cross-verification of originals) provided they self-endorse/deface the duty paid documents to the extent of utilization under the brand rate fixation and resubmit the working sheet with the above cited declaration and certificate.